Category Archives: Workers’ Compensation

Why CNAs and Home Health Aides Should Care about the Fight over a Federal Regulation

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090429-A-0868C-005A U.S. District Court in Washington, D.C., recently struck down a federal regulation that would mandate that home health aides are paid the minimum wage and paid overtime under the federal Fair Labor Standards Act (FLSA). Though the decision will likely be appealed, this decision is still a bad decision for the men and women who do the hardest jobs in health care – home health aides and certified nursing assistants.

Why home health aides aren’t covered by federal wage laws

Home health aides were exempted from the FLSA 40 years ago in order to make caring for the elderly less expensive. However, companion care has become a big and very profitable business. An index of publically traded home-health-care stocks has consistently outperformed the stock market as a whole for the last 13 years. This profitably is due in part to the minimum wage and overtime exemptions for home health aides.

How the home health exception affects other jobs in the medical field

The federal government estimates that nearly 1 million are employed as home health aides, while private sources estimate that number as 2 million. Home health is also a fast-growing field of employment. Home health aides essentially have the same job duties as certified nursing assistants (CNAs). CNAs are generally covered by minimum wage and overtime laws, but workers with the same skills and same duties are exempt from those laws if they are working as home health aides. CNA wages are pushed down by home health aide wages, which are exempt from federal wage laws.

Why pay is about more than wages

A recent study of CNAs showed that nearly 60 percent of CNAs report injuries during a 12-month period. The injury rate is similar for home health aides. The study also showed that higher-paid CNAs were injured less frequently than lower-paid CNAs. The study indicated that organizational factors really drove injury rates among CNAs. In other words, in settings where CNAs are truly valued, paid fairly and trained, the injury rates are lower. But if CNAs are treated as low-wage, high-turnover cogs in a machine, then injury rates are higher. Low pay for CNAs and home health aides isn’t just an issue for employees. Low pay for home health aides and CNAs has been linked to poor patient care.

While the Obama administration has been criticized for being too aggressive in enforcing the FLSA, the U.S. Department of Labor announced that they will delay enforcement of the home health aide regulation until July 2015. This assumes courts will let the Department of Labor actually enforce the regulation. Anyone concerned about this issue should contact their members of Congress to support legislation that ends the home health aide exception. People should also contact their state legislators to support legislation that would ensure that home health aides are covered by state wage and hour laws.

Will Protects Children, Assets, and Helps Prepare for the Unexpected

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last will and testamentOccasionally I write about topics that I think are of use to readers of the firm’s blog. Today’s focus is on a blog post that lawyer Andrew Hoffman wrote about preparing for the unexpected by writing a will.

The blog post was written to promote a new start in 2015 by reflecting on the importance of estate planning. Although estate planning is not a topic that many folks enjoy discussing, I wanted to encourage you to read this blog post from Krotter Hoffman PC, LLO, a law firm in northeast Nebraska. One of the best quotes in the blog post is this one: “The people that can least afford a will (they think), are actually the same people that need it the most – parents of young children.”

Please make the time for a will, even if you don’t think you have much to pass on to loved ones. Because, as Mr. Hoffman goes on to explain, if a person doesn’t have a will, then a judge will decide who takes care of your minor children. And whatever assets you have will also go to those minor children the moment each turns 19, regardless of their ability to manage those funds, which may include life insurance proceeds.

This information is also helpful to workers’ compensation clients or anyone who has received a lump sum settlement to plan for what happens to that money if something happens to you. Please follow up with an attorney to write your will, be safe, and take care.

Here’s a link to the original blog post:

http://www.krotterhoffman.com/#!A-New-Years-Resolution-Worth-Keeping/cutx/DC0CE14C-2B60-4E65-80F6-82C6560E60F5 titled: A New Year’s Resolution Worth Keeping.

Back to Downton Abbey – Why You Should Care About a Seemingly Ho-hum Supreme Court Case

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downtown abbeySo what does Downton Abbey have to do with a seemingly ho-hum recent Supreme Court case about pension benefits for union retirees? Lots.

The decision in question is the recent Supreme Court decision of M&G Polymers USA, LLC v. Tackett. In that case, the U.S. Supreme Court unanimously overturned a decision by the 6th U.S. Circuit Court of Appeals that interpreted the Labor Management Relations Act ruling that health care benefits for union retirees continue permanently, even if the collective bargaining agreement expires. In other words, even if a collective bargaining agreement ends, the company is still on the hook for health care benefits for retirees.

The Supreme Court ruled that since that understanding wasn’t explicitly spelled out in the contract, then the union retirees were out of luck. The Supreme Court relied on supposed “common law” principles to arrive at this result. Common law was developed by courts in England and transported across the Atlantic to the United States in the 17th century. It was a system that largely favored the Lord Granthams of the world. For example, there was no such thing as “workers’ compensation” or “employment law.” There was the “law of master and servant.”

If you watch Downton Abbey or know much about the history of the late 19th and early 20th centuries, the “servants” weren’t pleased with this arrangement. So starting in the 1910s, state legislatures started passing workers’ compensation statutes. In the 1930s and 1940s as part of President Franklin Roosevelt’s New Deal, Congress started passing laws like the Labor Management Relations Act and the Fair Labor Standards Act, which gave employees protections in addition to what they had under the common law. This expansion of employee rights continued with the Civil Rights Act of 1964, as well as the Americans with Disabilities Act, passed in 1990 and amended in 2008, and the Family and Medical Leave Act in 1993.

No law passed in the last 100 years that protects the rights of employees really has any basis in the common law, so when the Supreme Court starts using 18th century English law to interpret those laws, then employees should be concerned.

Lay people who follow politics may get confused by a 5-4 split. What happened there was that the four Democratic-appointed justices, Ruth Bader Ginsburg, Sonia Sotomayor, Elena Kagan and Stephen Breyer, agreed with the outcome of the case but not the reasoning used by five Republican-appointed justices, Chief Justice John Roberts, Antonin Scalia, Anthony Kennedy, Clarence Thomas and Samuel Alito. Of note, none of the supposed “liberal bloc” supported the decision made by the 6th Circuit Court of Appeals, which is the highest federal court for the states of Michigan, Ohio, Kentucky and Tennessee. The judges of the 6th Circuit are appointed by the president and subject to approval of the Senate, just like Supreme Court justices. It’s hard to argue that the judges of the 6th Circuit Court of Appeals are somehow out of the mainstream of legal opinion or radical bomb throwers.

Plaintiffs’ lawyers and union leaders who read this blog will sometimes lament how the blue-collar people we represent largely vote Republican, based on social issues and national security issues, even though their economic interests are aligned with the Democratic Party. But after reading M&G Polymers USA, LLC v. Tackett, can blue-collar conservatives be entirely blamed for not thinking the Democratic Party supports their economic interests? Maybe plaintiffs’ lawyers and union leaders are the real chumps for blindly supporting a national Democratic Party that seems to be indifferent to their interests and the interests of those they represent.

2014 Top Ten Workers’ Compensation Fraud Cases

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Guest author and respected colleague Leonard Jernigan, from The Jernigan Law Firm in North Carolina, wrote today’s post. His analysis is a tradition at this time of the year that highlights one of the many misconceptions in workers’ compensation. As you can see by both the quantity and dollar value, of his top 10 fraud cases, non-employee cases are dominant over worker fraud, and the dollar cost is quite large for the nine non-employee cases.

This is the third time that this blog has featured his compiled yearly list, and the information continues to be fascinating, informative and often disturbing. Each of the examples affected real people and their loved ones. Especially tragic was the situation where a workers’ compensation scam was linked to the death of a 5-month-old baby boy.

Fraud against workers tends to be on a much grander scale, and though it has been mentioned in previous blog posts, it is worth saying again that it’s the workers and taxpayers who are on the hook when it comes to situations that include overbilling, workers’ compensation scams, and not carrying workers’ compensation insurance. It can be tragic to workers and their loved ones if an employee gets hurt and the employer was cutting costs by not carrying workers’ compensation insurance. Without this safety net, when injured, workers often default to their personal health insurance (if they have any) or rely on the taxpayer-funded safety net, which shifts the cost burden from the businesses involved to the greater society of responsible taxpayers.

It is my hope that you have a safe and productive 2015.

  Number Value
Non-Employee Fraud Cases 9 $ 74,876,000.00
Employee Fraud Cases 1 $ 450,000.00
Total $ 75,326,000.00

Five of the top ten fraud cases in 2014 are from California. The other five cases are from Florida, Texas, Arizona, Washington and Georgia. As usual, non-employee fraud cases dominated the list and the dollar amounts are staggering, led by the $36 million over-billing case out of southern California. An emerging issue is the misclassification of workers, and we will likely see more of these cases in 2015 as enforcement steps up in this area.

1. (California) Medical Equipment Company Overbills $36 Million (3/17/14)

The owners of Aspen Medical Resources were indicted in on 49 felony counts of fraud.
The owners of Aspen Medical Resources were indicted in on 49 felony counts of fraud.

The owners of Aspen Medical Resources had all their assets seized and put into receivership by the Orange County District Attorney. They were indicted in on 49 felony counts of fraudulent overbilling of $36 million for hot-cold physical therapy machines. Although these machines retail between $250 and $500 Aspen often billed Southern California workers’ compensation claims departments thousands of dollars each time a machine was rented.  

2. (California) 15 Medical Professionals Indicted in $25 Million Scheme – Small Child Dies (6/24/14)

Ahmed Kareem, one of 15 doctors accused of participating in a workers’ compensation scam.
Dr. Ahmed Kareem   is accused of participating in a workers’ comp scam.

Fifteen doctors, pharmacists and other medical professionals in Southern California were charged in a $25 million workers’ compensation scam which was linked to the death of a baby. Prosecutors alleged insurance fraud and conspiracy in the 44 count indictment which detailed that the head of a workers’ compensation claims management firm hired pharmacists to produce a pain-relief cream and then gave kickbacks to the doctors that prescribed it and conspired to submit phony claims. A 5-month old boy ate the cream and died when his mother, who was using the prescribed cream for back and knee pain, allowed her son to suck her fingers to sooth him. The next morning he was found dead and tests showed he had ingested lethal amounts of drugs in this cream.

3. (California) Lowe’s Settled Independent Contractor Misclassification Case for $6.5 Million (7/3/14)

Lowe’s misclassified its installers as independent contractors, rather than employees.
Lowe’s misclassified its installers as independent contractors, rather than employees.

Over 4,000 “Lowe’s professionals” in California are members of a class action alleging that Lowe’s misclassified its installers as independent contractors, rather than employees, thus depriving them of a variety of employee benefits, from workers’ compensation insurance coverage to 401(k) plan participation. Lowe’s, without admitting liability, recently settled the case after mediation for a sum that could be as much as $6.5 million. The plaintiffs claimed that Lowe’s retained and exercised control over their work by requiring them to identify themselves as working for Lowe’s, wear Lowe’s hats and shirts, and attend training by Lowe’s.

4. (California) Paving Company Cheats System of $4 Million (6/19/14)

Sabas & Lucia Trujillo
Sabas & Lucia Trujillo face criminal charges for workers’ comp’ fraud.

Five owners (Sabas Trujilo, Lucia Trujilo, Rick Trujilo, Laura Fitzpatrick and Alex Trujilo), operators and employees of a Corona, California based paving company are facing criminal charges for alleged wage theft, premium fraud, workers’ compensation and payroll fraud. The Riverside County District Attorney’s Office alleges that the individuals’ criminal actions enabled them to illegally obtain about $4 million. After launching an investigation, the state obtained search warrants for both companies, seizing computers and bank, payroll and other documents. The state conducted several wage audits on several hundred projects, which ultimately led to the filing of criminal charges.

5. (Florida) False Insurance Certificates Check Cashing Scheme Defrauds Insurance Company of $1 Million (11/18/14)

Arturo Santos Zuniga paid laborers cash to avoid paying workers' comp'.
Arturo Santos Zuniga paid laborers cash to avoid paying workers’ comp.

Arturo Santos Zuniga, who also went by the name David Hernandez, was busted for paying laborers in cash to avoid paying workers’ compensation insurance premiums. Zuniga paid a North Lauderdale man to create and insure a fake or “shell” company, Behar Services Incorporated, and “rented” out insurance certificates to uninsured subcontractors in South Florida. Payments to the uninsured subcontractors were made through checks to the fake company, which were then cashed at check cashing stores. Behar Services Incorporated got its insurance policy by saying it had 10 employees doing carpentry and office work with an annual payroll of $210,000. The annual premium was about $26,500. Law enforcement financial reports show that just in the months from July to October, more than $7.3 million had been cashed out at check cashing stores to Behar Services Incorporated and/or the North Lauderdale man who started the company. A $7.3 million payroll would have cost more than $1 million more than the existing policy. No estimate of lost tax revenue was given.

6. (Texas) Man to Pay $806,000 for Underreporting Payroll to Workers’ Comp Carrier (3/11/14)

Howard Douglas Whiddon of Travis County was ordered to pay $806,000 in restitution.
Howard Douglas Whiddon was ordered to pay $806,000.

Howard Douglas Whiddon was ordered to pay $806,000 in restitution to workers’ compensation insurer Texas Mutual Insurance Co. after pleading guilty to workers’ comp fraud-related charges. He intentionally misrepresented the payroll of a related company, thus lowering his premiums. Mr. Whiddon was sentenced by a Travis County, Texas court to 10 years of deferred adjudication and 160 hours of community service.

7. (Arizona) Paul Johnson Drywall Inc. Agreed to Pay $600,000 in Back Wages, Damages and Penalties to 445 Employees (5/19/14)

Paul Johnson Drywall Inc. classified its workers as “members/owners” instead of employees.
Paul Johnson Drywall Inc. classified its workers as “members/owners” instead of employees.

Paul Johnson Drywall Inc. classified its workers as “members/owners” instead of employees, which stripped them of workers’ compensation and other protections afforded to employees. The owner, Robert Cole Johnson agreed to take concrete steps to ensure that misclassification of its workforce does not occur again and to pay $556,000.00 in overtime back wages and liquidated damages to at least 445 current and former employees. The employer also agreed to pay $44,000.00 in civil monetary penalties. Investigators found that the drywall contractor violated the Fair Labor Standards Act overtime and record-keeping provisions.

8. (Washington) Summit Drywall, Inc. Ordered to Pay $550,000 in Unpaid Wages and Damages to 384 Workers (2/20/14)

The owner of Summit Drywall, Inc. was ordered to pay damages to 384 employees.
Summit Drywall’s owner was ordered to pay damages to employees.

Thomas Kauzlarich, the owner of Summit Drywall, Inc. was ordered to pay $550,000 in overtime back wages and liquidated damages to 384 current and former employees. An investigation showed that the company violated the Fair Labor Standards Act’s overtime and record-keeping provisions from October 15, 2009 to April 15, 2013. The article did not report the amount of reduced workers’ compensation premiums paid.

9. (Georgia) Nurse Gets 5 Years in Prison for $450,000 Bogus Workers’ Comp Claims (8/26/14)

A VA nurse from Glenwood, GA, will serve five years in prison for mail fraud and fraudulent claims.
A VA nurse from Glenwood, GA, will serve five years in prison for mail fraud and mailing fraudulent claims.[/caption] Loretta Smith, a VA nurse from Glenwood, GA, will serve five years in prison and must repay $450,000.00 in federal funds by filing bogus workers’ compensation claims, pleading guilty to two counts of mail fraud in the mailing of fraudulent claims, in which she received more than $450,000.00. She agreed to forfeit the equivalent of $454,740.06 in cash, real estate and other property. She was also sentenced to three years probation after her release.
10. (California) Drywall Company Owners Arraigned on $420,000 in Fraud Charges (12/11/14) The owners of a defunct drywall company, National Drywall in San Bernardino, CA, were arraigned on charges that they defrauded their workers’ compensation insurance carrier of $260,000.00 and stole $160,000.00 from their workers.
 
Honorable Mention 

(Oregon) Uncooperative Hillsboro Businessman Convicted of $481,519 Tax Evasion – Only Gets 30 Days In Jail (9/30/14)

Stephen Nagy engaged in fraudulent schemes to evade payment of payroll taxes.
Stephen Nagy engaged in fraudulent schemes to evade payment of payroll taxes.

Stephen Nagy was the former president of Hillsboro-based S&S Drywall Assemblies. The IRS assessed the company $481,519 in federal employment taxes, penalties and interest between June 2009 and September 2010. Nagy met with the IRS and chose not to comply with the payment plan and engaged in a variety of interrelated fraudulent schemes to evade the payment of the delinquent payroll taxes. Nagy intimidated, manipulated, and threatened the loss of much needed jobs to gain the cooperation of his employees. Special agents of the IRS learned that Nagy had transferred all of S&S Drywall Assemblies income, contracts, receivables and assets to ASM Drywall, Inc. a shell company he created and placed in his sister’s name. The Oregon attorney general prosecuted Nagy in 2011 on allegations of criminal anti-trust and racketeering. He was sentenced to 30 days in jail and five years of supervised probation.

 
For more information, contact:
Leonard T. Jernigan, Jr.
Adjunct Professor of Workers’ Compensation
N.C. Central University School of Law
The Jernigan Law Firm
2626 Glenwood Avenue, Suite 330
Raleigh, North Carolina 27608
(919) 833-0299
neb@jernlaw.com
Website: www.jernlaw.com
Facebook: https://www.facebook.com/jerniganlawfirm
Twitter: @jernlaw
Blog: www.ncworkcompjournal.com

2015 Mileage Rates Rise to 57.5 Cents per Mile

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Injured workers should be reimbursed for mileage and travel expenses that are related to the medical process in workers’ compensation claims, as I wrote about last year on the blog. It continues to be essential to keep track of detailed receipts, as it definitely helps with submitting those expenses to get reimbursed in a timely manner.

The 2015 mileage reimbursement rate has risen to 57.5 cents per mile, according to the IRS. This “adjustment takes into account all the costs associated with owning a car, including insurance and repairs,” according to this article in Forbes. That also means the rate has increased, even though gas costs have recently gone down.

Generally speaking, the federal rate changes annually. However, when gas prices went soaring in 2008, a mid-year increase went into effect.

As a reminder from a blog post that firm partner Todd Bennett wrote in 2011, injured workers can be reimbursed for activities such as “travel to seek medical treatment, pick up medications, or while participating in a vocational rehabilitation plan.”

The best way to do this is to work with your attorney and legal assistant to keep track of all mileage. This can include appointments for Independent Medical Exams (IME), too. Then your attorney can help you get reimbursed.

It is often essential to save receipts and keep a record for yourself of your doctor’s visits and other reimbursable trips, including physical therapy and trips to pick up medication. Providing that log to your attorney and saving receipts incurred from specific doctor visits and other reimbursable trips creates a “narrative” that makes it easier to justify those expenses.

Because money is always tight for injured workers, contact an experienced workers’ compensation attorney if you have questions about a specific situation.

Health Care Testing: A New Frontier for Worker’s Comp

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Today’s post comes from guest author Thomas Domer, from The Domer Law Firm in Milwaukee. Although the firm has featured a related blog post before, I think it is worthwhile to re-examine this subject. As has been mentioned below, there are a number of potential issues that could arise from such tests. In addition to the monetary fine for those who did not participate in the screenings, the workplace can seem less welcoming, regardless of whether person’s challenge is physically obvious. Take high cholesterol that has a genetic basis, for example. If a worker gets a fairly regular physical (annual or otherwise) through the preventative side of their health insurance benefits, that employee is probably already being treated for this issue and also probably doesn’t need the added bother of a company or contract nurse calling to espouse the benefits of decreasing that number, as these are concerns between workers and their doctors. Because for this particular issue, it is very possible that genes can trump what is considered the “healthier lifestyle” referred to below, even if that person appears to be more physically fit than other co-workers. In addition, it might be argued that genetic predisposition could be blamed when an occupational exposure is the cause, as Mr. Domer alludes to below. So even with money or benefits on the line, though losing $4,000 is definitely significant, it might be worthwhile for an employee to reconsider whether participating in a company’s wellness testing is really worth it in the long run.

As a worker’s compensation lawyer, I see many news stories through the prism of how the news event or trend will affect injured workers in the worker’s compensation system. A federal judge in Minnesota has ruled that Honeywell, Inc. can begin penalizing workers who refuse to take medical or biometric tests. 

The EEOC had claimed Honeywell’s policy violated the Americans With Disabilities Act and the Genetic Information Nondiscrimination Act. They filed a lawsuit in Minneapolis on behalf of two Minnesota employees of Honeywell.

The tests Honeywell required their employees to take measured blood pressure, cholesterol, and glucose, as well as signs that employee had been smoking. Employees who declined to take the test could be fined up to $4,000 in surcharges and increased health costs. Honeywell said the program is designed to “encourage employees to live healthier lifestyles and to lower health care costs.” Honeywell says the testing promotes employee well-being. Management also indicated “We don’t believe it’s fair to the employees who do work to lead healthier lifestyles to subsidize the healthcare premiums for those who do not.”

The ramifications of such testing for worker’s compensation immediately come to mind. In any kind of an occupational exposure claim, such tests could be used to help deny worker’s compensation claims for employees who smoke, are overweight, have diabetic condition, claims involving occupational back conditions, carpal tunnel claims, and any kind of respiratory complaints. Another “slippery slope” may be the use of these kinds of testing to actually screen prospective employees, since the employer rationale would be that hiring folks with those pre-existing conditions would cost the employer more money.

Roger Moore Chairs Nebraska State Bar Association Work Comp Section Seminar

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Attorney Roger Moore

Firm partner Roger Moore recently completed his term as the chairman for the Nebraska State Bar Association (NSBA) Workers’ Compensation Section for 2014 with the conclusion of the Annual Workers’ Compensation Seminar on Nov. 14.

“My responsibilities were to develop topics, secure speakers and serve as master of ceremonies for the seminar by communicating with a variety of individuals over the course of numerous months,” Moore said. Roughly 100 people attended this year’s seminar, including firm associates Brody Ockander and Brianne Rohner Erickson

Moore completed his final year of serving a four-year rotation of leadership positions within the Workers’ Compensation Section, which started when he was nominated for and elected to the treasurer position three years ago. Moore was the third member of the firm to serve as chairman of the NSBA Workers’ Compensation Section. Partner Todd Bennett and I are past chairmen as well. Moore has participated as a member of the WC Section for the last 14 years, and is admitted to practice law in both Nebraska and Iowa.

There are currently more than 30 sections in the NSBA, according to its website. Each section is made up of a group of attorneys who share similar interests and voluntarily join that section. Attorneys can belong to more than one section.

The Workers’ Compensation Section is consistently one of the largest sections of the association. The section’s goals, according to Moore, are similar to the NSBA’s mission, which can be found here. Some of the priorities that Moore highlights include “to foster and maintain integrity, professionalism, civility and high standards of conduct by NSBA members,” and to help “provide quality support and services for NSBA members.”

Moore’s service is yet another example of the efforts our attorneys and staff have made to be leaders in the legal community, both as participants and leaders in shaping the legal conversations that affect our clients.

State Laws Determine Worker’s Rights: Work Comp Benefits, Process Vary by State

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Many workers are hired in one state but are required to attend orientation or participate in a hiring process in another state because their potential employer is principally located and doing business there. Once they are hired and accept the job, they are then required to work in another state for various reasons. In these situations, many workers do not realize that a different state’s laws could apply to their workers’ compensation claim if they are injured in a state that is

  1. different from where they were hired,
  2. different than where they accepted the job,
  3. different from where their employer is principally located or performing work, or
  4. even different than where they currently live. 

If you have been injured in another state, you may be eligible to have your workers’ compensation benefits determined by another state’s laws. This is important, as the benefits you could be entitled to are different in every state. In certain respects, the differences are significant in terms of the amount of weekly benefits, permanent benefits, or type and duration of medical care you may be able to receive.

The right to choose your family physician to treat you for your injury or the amount and duration of the disability benefits you may be entitled to are significantly different in every state. Let’s consider a few pairs of cities:

  • Omaha, Nebraska & Council Bluffs, Iowa
  • Sioux City, Nebraska & Sioux City, Iowa
  • Nebraska City, Nebrsaka & Harlan, Iowa

These cities in different in Iowa and Nebraska border each other, and a great number of residents from one are employed and work in the other. If you are injured in one state but live in another, and depending on where you were hired or where you were when you accepted the employment, you may have a Nebraska or Iowa workers’ compensation claim, or even both. 

Nebraska

If your employment or your accident has any ties to the state of Nebraska, your employer is required to file a First Report of Injury with the Nebraska Workers’ Compensation Court. When this occurs, it is common for the Nebraska Workers’ Compensation Court to actually mail you a copy of your own First Report of Injury that was filed with the court by your employer. Just because a First Report of Injury was filed in Nebraska and just because the Nebraska Workers’ Compensation Court sends you a copy does not mean you are limited to Nebraska for the benefits that you may be entitled to. 

Iowa

It is also normal for an insurance carrier of the employer to mail you a letter that says, “Your employment agreement, whether in writing or made in person, required your accident to fall under Iowa law,” or some other state’s law. Generally, no one has the right to decide for you which state your case can be determined in. It is a question of each state’s laws that determine where your claim can be processed.

Nebraska and Iowa

As a matter of general practice, if your accident occurred in that state, your claim and benefits can be determined based on that state’s laws. Other things like where your employer is principally located or where your employer regularly performs work can determine if you have a claim in each state. Further, your contract of hire or where you accepted the employment can also play a part, as well as where you were residing at the time of your accident in relation to where your employer was performing work, can also determine which state you may have a claim in. 

These things, as well as what type of benefits each state allow, could make it possible for you to file in both states.

Time Periods to File in Each State

Each state has a certain time period in which to file a claim or action in the compensation court. 

  • In Nebraska, you have two years from the date of accident OR two years from the date of any payment (weekly disability check, medical bill, mileage, prescription) in which to file an action in the compensation court. 
  • In Iowa, a person has two years from the date of accident OR three years from the date of payment of a weekly disability benefit check in which to file an action in the compensation court.  

Beware, however, that payment under one state’s laws may not save your claim in another state. For example, a payment under Iowa law will count toward a payment in Nebraska. However, a payment under Nebraska law will not count toward a payment under Iowa law.

Award, Order or Settlement Agreement for Benefits

It is important to note as well that an award, order or settlement can affect your right to file a claim in another state. 

For example, if one obtains a Court Award, Order or Settlement in Nebraska, this would prevent you from obtaining any benefits in Iowa, if you had the option of pursuing benefits in both states. 

On the other hand, if the same person obtained a Court Award, Order or Settlement in Iowa, a person could still pursue additional benefits in Nebraska that are different than what was provided in Iowa.

In both states, the insurance carrier would be entitled to a credit for what they paid in the other state, but you would still have the opportunity to pursue different and additional benefits in the other states, potentially.    

Summary

The differences in law issues are often very complex. Whatever your situation is, if you think there might be any question as to which state’s laws apply to your case, you should speak to an experienced attorney who can advise you about the laws in each applicable state.